Release 1.  This is the first release of this unit of competency in the TLI Transport and Logistics Training Package.

This unit involves the skills and knowledge required to establish supply chains.

It includes determining supply chain requirements and supply chain management strategy, aligned with the development of a supply chain management model to meet organisational needs.

This unit was developed for materiel logisticians working within materiel logistics but is applicable to individuals in broader logistics roles.

Individuals work independently or as part of a team under direct or indirect supervision, use discretion and judgement, and take responsibility for the quality of their outputs. All activities are carried out in accordance with relevant organisational policy and procedures.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Not applicable.

X – Logistics

Not applicable.

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 

Determine supply chain requirements 

1.1 

Supply chain components are identified and links and inter-relationships are analysed in accordance with organisational policy and procedures

1.2 

Communication, data access, information sharing and technology requirements for an integrated supply chain are determined

1.3 

Requirements for collaborative planning, forecasting and tailored supply chains are identified

1.4 

Supply chain requirements are documented in accordance with organisational policy and procedures

1.5 

Work health and safety (WHS)/occupational health and safety (OHS) requirements, including those contained in organisational procedures, are applied throughout the operation

2 

Determine supply chain management strategy 

2.1 

Outsourcing, choice of suppliers and partners, reshaping contractual relationships and the performance of the entire supply chain rather than individual supply chain segments are covered by strategies

2.2 

Matching supplier capability to stakeholder requirements including strategies to optimise electronic information sharing and inventory risk management, and to minimise environmental impacts is included in strategies

2.3 

Strategies to build effective stakeholder supplier relationships are identified

2.4 

Stakeholder satisfaction requirements across the supply chain continuum are included in performance management strategies

2.5 

Strategic alliances, electronic business and electronic data interchange are included in supply chain management strategies

2.6 

Legal, ethical, environmental and security issues relating to supply chain management are addressed in supply chain management strategies

2.7 

Integration of supply chain processes into existing business processes is included in strategy

3 

Develop supply chain management model 

3.1 

Supply chain management options are researched, and strengths and weaknesses of each option are identified

3.2 

Supply chain management models are investigated and requirements are analysed and compared with supply chain capability and culture

3.3 

Model for supply chain management is developed that meets organisational needs including information flow, collaborative planning and forecasting, in accordance with the organisation’s supply chain management strategy

3.4 

Supply chain management model is developed to support optimised inventory footprints, operating costs, faster cycle times and greater stakeholder satisfaction rates

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions can be found in the Companion Volume Implementation Guide.

This unit replaces and is equivalent to TLIX5015 Establish supply chains.

Release 1.  This is the first release of this unit of competency in the TLI Transport and Logistics Training Package.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria on at least one occasion and includes:

• adhering to relevant work health and safety (WHS)/occupational health and safety (OHS) requirements
• analysing and evaluating information, and determining how it may be impacted by the supply chain or how the supply chain might be impacted by the information being considered
• analysing supply chain requirements
• applying industry knowledge of operations, trends and drivers to establishing supply chains
• applying logistics and project management knowledge when establishing supply chains
• communicating with stakeholders
• consulting and negotiating with internal and external stakeholders and resolving potential areas of conflict or concern to ensure overall objectives are achieved
• identifying relationships between organisational goals and recognising how own work contributes to achieving these goals
• identifying relevant information from integrated logistics support program and materiel sustainment program that is relevant to establishing supply chains
• identifying requirements for plans and adjusting them as necessary to ensure effective and efficient performance
• incorporating feedback and analysis of information to overcome challenges or setbacks
• initiating and efficiently monitoring processes
• initiating remedial action required
• preparing and providing relevant reports and documentation
• undertaking performance measurement to enable objectives to be measured against defined parameters
• using organisational strategic objectives to identify long-term factors and external considerations for establishing a supply chain.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria and includes knowledge of:

• codification and cataloguing processes
• industrial base capability
• integrated logistics support
• key international agreements relating to supply chains
• concept of interoperability in supply chains
• legislative and regulatory environment, including relevant environmental and sustainability issues
• logistics governance
• logistics support analysis principles and processes
• materiel sustainment
• organisational policy and procedures
• organisational role relevant to supply chains
• performance measurement
• planning processes relating to supply chains
• product knowledge related to systems and/or equipment in service in the organisation
• safety, legislative and statutory requirements, including relevant environmental and sustainability issues
• supply chain concepts.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to:

• relevant and appropriate materials, tools, equipment and personal protective equipment currently used in industry
• applicable documentation including legislation, regulations, codes of practice, workplace procedures and operation manuals.